Bush Watson, a real estate investment and development firm in Maine, took on a challenging project when it acquired the Murchison Building. Because it successfully navigated that process, the deal earned a 2023 CoStar Impact Award from real estate professional familiar with the market.
The Portland, Maine-based buyer specializes in renovating and re-branding the properties it acquires and upgrading operations. Many of its projects involve historic properties like the Murchison Building. It is currently redeveloping a former textile machinery factory, built in 1920, in Biddeford, Maine, into apartments and self-storage units.
Although Bush Watson has acquired and rehabilitated other properties in Wilmington, the Murchison Building was no walk in the park. The office building is almost fully occupied and Bush Watson renegotiated most of the leases with an eye toward retaining its diverse portfolio of about 80 tenants. During that process, Bush Watson found "discrepancies in leasing information" from prior decades, all of which required reconciliation before a sale could be commenced.
Bush Watson told a local business news publication it plans maintenance and structural improvements. It acquired the property for about $8.3 million.
About the project: The Murchison Building opened in 1914 as offices for Murchison National Bank. Located in the historic district of downtown Wilmington, about 150 yards from the Cape Fear River, the 11-story property features a brick and marble exterior. It was Wilmington's tallest building for about a century. The building was designed by Kenneth Murchison, an architect based in New York who had connections to the bank's namesake Wilmington family.
What the judges said: "The Murchison Building is an iconic and landmark building in Wilmington," said Adam Jones, an economics professor at the University of North Carolina Wilmington.
"Research suggests that unique buildings and physical features are an important part of placemaking," and it's welcome news that Bush Watson plans to retain that, Jones said.
"I chose Murchison as the most impactful due to the complexity and challenges faced by the age of the property and its iconic standing," said Karen Widmayer, a principal at KW Communications. Bush Watson was able to finance its purchase despite the difficult climate of high interest rates, she said.
The community "is hopeful Bush Watson will invest the needed capital to preserve the only historic high-rise in downtown Wilmington," said Terry Espy, owner of MoMentum Cos.
They made it happen: Paul Loukas, partner and broker-in-charge, and Lindsey Hess, senior vice president, at Cape Fear Commercial for the buyer, Bush Watson in Portland, Maine. Tom Watson, founder of Bush Watson. Loukas for the seller, Murchison Group. Chris Camman, president at Murchison Group.
